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Check Before You Invest : Meenakshi India Ltd

BSE: 544831 NSE: ISIN: INE208H01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Meenakshi India Ltd belong to?
Meenakshi India Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Meenakshi India Ltd a good quality company?
Meenakshi India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Meenakshi India Ltd undervalued or overvalued?
Meenakshi India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 10.35 -
Price to Book 3.19 -
Price to Sales 2.43 -
EV to EBITDA 7.44 -
Q.4 Is Meenakshi India Ltd a good buy now?
Meenakshi India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Meenakshi India Ltd?
Meenakshi India Ltd revenue growth is 8.2% for FY-2025, which is below its 5-year CAGR of 13.65%, indicating slower growth.

Q.2 Gross Profit margin of Meenakshi India Ltd?
Meenakshi India Ltd Gross profit margin which is the profit after deduction of direct costs, is 30% for FY-2025, which is above its 5-year median of 16.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Meenakshi India Ltd?
Meenakshi India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.81% for FY-2025, which is above its 5-year median of 14.21% indicating increasing margins.

Q.4 Net Profit Margin of Meenakshi India Ltd?
Meenakshi India Ltd Net Profit Margin is 23.51% for FY-2025, is above its 5-year median of 11.83%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 30 16.8
Operating Profit Margin (%) 18.81 14.21
Net Profit Margin (%) 23.51 11.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Meenakshi India Ltd?
Meenakshi India Ltd Return on Asset is 29.17%, which is above its 5-year historical median of 20.65%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Meenakshi India Ltd?
Meenakshi India Ltd Return on capital employed is 47.16% for FY-2025, which is above its 5-year historical median of 38.54%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Meenakshi India Ltd?
Meenakshi India Ltd Return on equity is 39.17% for FY-2025, which is above its 5-year historical median of 32.61%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Meenakshi India Ltd?
Meenakshi India Ltd Cash conversion cycle is 104 days, above its 5-year historical median of 94 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.24 1.46
ROE (%) 39.17 32.61
ROCE (%) 47.16 38.54
Cash Conversion Cycle 104 days 94 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Meenakshi India Ltd?
Meenakshi India Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Meenakshi India Ltd?
Meenakshi India Ltd Debt to cash flow from operations is 0.14, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Meenakshi India Ltd?

Q.1 Promoter shareholding and pledge status of Meenakshi India Ltd?
Promoters hold 71.22% of the Meenakshi India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Meenakshi India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Meenakshi India Ltd vs industry peers?
Meenakshi India Ltd revenue CAGR is 13.65%, compared to the industry median CAGR of 0.06%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.2 0.1
Gross Profit Growth (%) 92.3 8.6
Operating Profit Growth (%) 50 7.6
Net Profit Growth (%) 129.4 12.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.24 0.93
ROE (%) 39.17 4.51
ROCE (%) 47.16 7.88
Cash Conversion Cycle (days) 103.68 100

Valuation & price assessment

Q.1 Stock return of Meenakshi India Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Meenakshi India Ltd vs historical?
The current P/E ratio of 10.35 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 10.35 - 20.16
Price to Book 3.19 - 1.32
Price to Sales 2.43 - 1.06
EV to EBITDA 7.44 - 9.31

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